5. Procter & Gamble
Founded: 1837
Headquarters: Cincinnati, Ohio, USA
Chairman and CEO: A.G. Lafley
Products: consumer goods
(Beauty, Household Care, Health & Well-Being)
Employees: 138 000 worldwide
More than 250 brands, including 23 brands which have
more than a billion dollars in net annual sales
25th largest US company by revenue, 81th in the world (2006)
Procter & Gamble
9. Procter & Gamble
Long time to internationalize: almost 100 years before P&G
operated internationally
1930s: P&G began to sell its products overseas (International
Strategy)
1950s: P&G built its brand in different countries with
localization strategy
1980’s: P&G focused on the largest emerging market in the
world (China…) with a localization strategy
1990’s: P&G benefit from using a transnational strategy
International expansion of Procter & Gamble
12. Procter & Gamble
Multi-domestic strategy VS. Transnational strategy
WEAKNESSES STRENGTHS
• Difficulty in transferring
knowledge across countries
• High costs (tailored products
+ duplication of resources)
• Control and coordination
problems
No global efficiency
• Ability to adapt to local
market
•Ability to attain economies of
scale
• Ability to increase learning
Global competitiveness
14. Procter & Gamble
some problems
Time: the history of P&G shows that the transition from a
strategy to a transnational strategy requires much time.
Creat a viable organizationnel structure and set of control
systems
Management: There were also big managerial challenges
for Procter & Gamble in order to have a transnational strategy
15. Managers need solve three main challenges:
Coordinate the decision making between each subsidiary
and the parent company
Transfer knowledge
Set up a strong marketing strategy which meets the local
customers’ requirements
Procter & Gamble
16. V. Conclusion
The strategy’s choice depends on the industry
or the product.
The strategy is dynamic.
P&G adjusted its strategies in different periods
17. VI. Sources
Procter and Gamble’s website : www.pg.com
Global business strategy and operationshttp://best-management-
articles.blogspot.kr/2014/09/global-business-strategy-and-
operations.html
P&G's Success Story in China.
http://www.icmrindia.org/casestudies/catalogue/Business
%20Strategy/P&G's%20Success%20Story%20in%20China
%20Business%20Strategy.htm
Strategy in Action https://books.google.co.in/books?
id=Sy8vejqbcocC&pg=PA148&lpg=PA149&ots=lHJ-
188rKY&dq=localization+strategy+of+P&G#v=onepage&q=locali
zation%20strategy%20of%20P&f=false
